Speed Mode

One must be brief as they are coming to change my internet over to speeds unknown to residents in the history of mankind.  One truly is impressed with how far infrastructure has come.  The reversal today was strong and with it moved several momentum darlings like NFLX AMZN TWTR and YELP.  They call me crazy when they see TWTR swell to nearly 20% of my book. There was also a big rotation into old man utilities.  Basically the Fed backed off the idea of raising rates and the market found a bid.

Truth be told, this market was looking for any reason to have a bid.  The depths the Nasdaq traveled before finding a buyer sort of negates the opportunity to call this a higher low.  This makes me think we see some range bound chop in the near term.  What I want to see is whether these conditions lead to range compression and individual stocks decoupling from the broad market.  If not, I will increase the attention and resources allocated to intraday future scalping.

I made one move today, buying back my YELP position in the November duration.  This chart looks splendid to my eye, and I have no shame in reentering a still-valid setup.

Making only one move may seem simple and trite, but you know what I didn’t do?  Capitulate on my longs down in the trough.  Instead I took a long bike ride across the windy Michigan terrace.  The gusts were so strong I managed to hit 37 MHP on flat ground!  The wind helped, as did 3 weeks of training LEGS ONLY at the gym.

As hard as it may seem, the market printed anther neutral extreme.  Yesterday’s pointed to lower prices this AM.  Today’s points to higher prices tomorrow AM. I suppose many of you cannot afford to take this game one day at a time.  But my best advice is to take this game one day at a time.  You are small, use it, like a fast boat on big choppy waters.